Structuring This CFD

I am trying to put together a deal and wondered about comingeling a CFD and owner type financing.

the seller wants 70,000 for the 3 unit property.
I want to structure the deal as a installment contract whereas I pay 55,000 @ 8% =366.67 interest only for a 3 year balloon at which time I will refi and fulfill terms of the contract giving the seller 68,200. with no traditional closing costs or commisions

I wanted to structure this way in case I decide to refinace early. I realize in a conventional CFD I could purchase @ 68200 paying 366.67 with all of that going toward sales price but then I would, if refinanced before 36 months be required to pay more for the property. The balance unpaid of 68200. I guess I am asking if I could set up a quiet deal with owner financing without conventional closing?

This seems a bit complicated as fars as costs and liabilities[ Edited by Brill on Date 09/03/2004 ]

Comments(2)

  • swetbak3rd September, 2004

    Brill,

    I don't understand. A Contract for Deed IS owner financing.
    Where are you getting the $55,000?
    Where are you getting the $68,200?
    If you are going to refi after 3yrs, I presume you will be getting a loan, you will need to have a traditional closing, and all the costs associated with it.
    You can close on the owner financing for the initial 3yr period without conventional closing, but you will still have some costs (recording fees, title insurance, inspection, survey, etc..)
    Have you thought about a lease option with the Seller with a 3yr balloon?
    [addsig]

  • Brill3rd September, 2004

    55000 is the intial offer 68,200 is the cost after 36 interest only 8% payments of 366.67.

    As far as closing costs refi should be considerably less than purchase. Perhaps I should just structure a deal as an owner financed deal with a trditional closing since I do not fully grasp Land contracts. and the closing at contract fulfillment.


    Bri :-D

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